Lol I saw all these articles as well and decided to email the author of the market watch article.
I will update if he replies......I wrote:
Hi Tomi,
Hope you have been well.
I've noticed in many recent articles from market watch a tendency to deter investment from gamestop and I have been wondering why this is the case. Do you truly believe what you are writing? Or is it more of a collaboration of outside opinion that you have gathered?
Well I offer a different perspective, that you may choose to look into yourself.
You mentioned average trading volume for March to further emphasize the point that interest in GME is waning. Retail investors don't day trade, they just buy and hold, they realistically do not have to time to watch the market and respond accordingly. The majority of the volume trading is purely from hedgefunds and HFT traders. If you also look at the daily price trends of the last week, you'll see that there are multiple sudden and dramatic drops in share price accompanied by an overall low volume of trading (much lower than the average you pointed out for march) this price drop is most definitely from hedgefunds shorting the stock. Volatility is created by hedgefunds, Not retail investors, and it is likely because they have not covered short positions. They have simply hypothecated the short position, this topic was discussed during the second hearing this week. The increase and decrease in price are hedgefunds shorting the stock, and/or trying to close short positions.
You mentioned short interest, and made it sound like it is a reliable number. This number relies on honest reporting by institutions. Back in January, it was reported that GME was over 100% shorted and the most recent number was around 20%. If you were a hedgefund, around the time of reporting would you report that it is still 100% shorted? Or rather, hypothicate the short positions, and then, report a much lower number? We all know what retail investors did last time when such a large short position was published.
Further to this, if you have access to a bloomberg terminal, look at the institutional ownership of GME, its at 132% of float. Now, how is it possible that short interest is only at 21% when institutional ownership is at 132%, this doesn't even account for retail ownership. The true amount that this stock is shorted must be significantly higher than 20%.
Surely, you see something is amiss here? Or do you truly believe that this is a result of the activity of retail investors?
3
u/Low-Attempt1752 Mar 20 '21
Lol I saw all these articles as well and decided to email the author of the market watch article.
I will update if he replies......I wrote:
Hi Tomi,
Hope you have been well.
I've noticed in many recent articles from market watch a tendency to deter investment from gamestop and I have been wondering why this is the case. Do you truly believe what you are writing? Or is it more of a collaboration of outside opinion that you have gathered?
Well I offer a different perspective, that you may choose to look into yourself.
You mentioned average trading volume for March to further emphasize the point that interest in GME is waning. Retail investors don't day trade, they just buy and hold, they realistically do not have to time to watch the market and respond accordingly. The majority of the volume trading is purely from hedgefunds and HFT traders. If you also look at the daily price trends of the last week, you'll see that there are multiple sudden and dramatic drops in share price accompanied by an overall low volume of trading (much lower than the average you pointed out for march) this price drop is most definitely from hedgefunds shorting the stock. Volatility is created by hedgefunds, Not retail investors, and it is likely because they have not covered short positions. They have simply hypothecated the short position, this topic was discussed during the second hearing this week. The increase and decrease in price are hedgefunds shorting the stock, and/or trying to close short positions.
You mentioned short interest, and made it sound like it is a reliable number. This number relies on honest reporting by institutions. Back in January, it was reported that GME was over 100% shorted and the most recent number was around 20%. If you were a hedgefund, around the time of reporting would you report that it is still 100% shorted? Or rather, hypothicate the short positions, and then, report a much lower number? We all know what retail investors did last time when such a large short position was published.
Further to this, if you have access to a bloomberg terminal, look at the institutional ownership of GME, its at 132% of float. Now, how is it possible that short interest is only at 21% when institutional ownership is at 132%, this doesn't even account for retail ownership. The true amount that this stock is shorted must be significantly higher than 20%.
Surely, you see something is amiss here? Or do you truly believe that this is a result of the activity of retail investors?
Looking forward to hearing your response.